ISDA Focus: Clearing and Portfolio Compression

The industry's progress in reducing counterparty credit risk.

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The industry's progress in reducing counterparty credit risk.

ISDA and the industry are committed to expanding clearing and portfolio compression efforts as part of the overall goal to reduce counterparty risk. Our progress is reflected by the increasing range and volume of transactions that are cleared and compressed.

The size of the CDS market has been reduced by more than 75 percent through a combination of clearing and compression; more than $15 trillion has been centrally cleared while portfolio compression has eliminated more than $70 trillion.

Over 40 percent of the interest rate swaps market is now centrally cleared. Another $106 trillion of interest rate swaps has been eliminated due to portfolio compression.

Below is a list of analyses of existing clearing services, comment letters to regulators and industry commitments related to ISDA and the industry's work in OTC derivatives clearing and portfolio compression. Additional information on clearing and portfolio compression is available from TriOptima triReduce, Markit and ICE Clearing.

To learn more about ISDA's work in the industry's clearing commitments to regulators, visit the G20 Commitments page.